USD & EQUITIES On the HOT SEAT - US Investors Stays while others Shift Gears

Forex Market finally getting some Boost!

The USD - DXY continued weakness contrary to its short-lived, relief recovery posted last Jan 02 have given the EURO a pronounced rally currently near the 1.2150 levels as reflected on the chart below. This move have been a threat for European equities, as quite a number of US equity investors shifted towards Europe including some Asian emerging market stocks. 

EURO as of Jan 12, 2018 Fig A

With a full blown record levels for the US major indices, they have proven to be more resilient in spite of the recent declines which started on the Equity Futures market at the start of the week. And met a considerable rally where the DOW would open higher above 25600 levels. Whisper numbers  of 30k is in the air, as traders are quietly aiming the probability how remote that this would even happen soon or whenever. The same is true for the #SP500 3k and the #NASDAQ along side the #RUSSELL 2000 gaining ground from the past week.

Moving forward, we still expect these markets to stay well within our time frame before any major changes occur. A blow by blow market report would not be necessary as most of our trade positions in the DDM and UDN ETFs are in place from a carry over from 2017 and be able to ride on this 'Reinforced Market Trend' the best way possible.

While on the spot currency front other than the EURUSD, Commodity currency such as the AUDUSD has always been our choice in Asia compared with the USDJPY since it has been confined well within its range especially with the twist made by the BOJ on its monetary policy that saw an acceleration of the YEN back below the 112.00 aiming at the 110.00 levels in the mid term trade outlook.